13 August 2009

Microsoft ordered to withdraw Word

An injunction against Microsoft has been granted to Canadian software company i4i (Infrastructures for Information) to prevent Microsoft from selling copies of Word that infringe i4i's XML patent.

The Guardian reports that Microsoft was ordered to pay $40m by the US District Court of Eastern Texas for wilful infringement of i4i's XML patent, for selling copies of Word that can open .XML and .docx files containing custom XML.

Judge Leonard Davis also ordered Microsoft to pay $37m in prejudgement interest and a further $21,102 per day until final judgement is reached.

Microsoft has 60 days to comply with the injunction and remove the offending versions of Word from the marketplace, but would rather appeal the case than remove XML or withdraw Word, which could cost the company $290m - not including the costs of defending and appealing the case.

Microsoft spokesman Kevin Kutz stated: "We are disappointed by the court's ruling. We believe the evidence clearly demonstrated that we do not infringe and that the i4i patent is valid. We will appeal the verdict."

i4i's injunction against Microsoft is only the latest chapter in the history of legal battles against the Silicon Valley giant. Microsoft's disappointment with the court's ruling is surprising, considering the speciality of East Texan courts in cases of litigating software companies and 'patent trolls.' The current success rate for all cases is 71.9 per cent.

If Microsoft's appeal is unsuccessful, it will have to withdraw all copies of Word that infringe the XML patent, including Word 2003. What's more, if i4i is successful the case could lead to further trials against other software companies infringing the XML copyright.